complianceuniverse.org-An Unintentional Act of Bribery

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wrongdoing in good faith and in a timely fashion to maximize credits and to avoid harsh penalties. Such a disclosure is in the organizations' best interests, because it can help avoid prosecution, bankruptcy, and loss of trust of its customers. What should companies do? Voluntary self-disclosure is the ideal way to come clean and avoid stringent penalties. Where failure to report a known act of corruption is a criminal offence, but the employees or the company itself are not implicated, the company can act to comply with the regulation. Reporting corruption when employees or the organization are implicated in the said corruption puts the company in a difficult position. By reporting, a company can risk incriminating its employees or itself, but failure to report is a more serious criminal offence. The key considerations and benefits of reporting misconduct include: Immunity from prosecution Mitigation of criminal penalty Mitigation of penalties such as debarment or cancellation Avoidance of consequential offences stemming from the fraud, including tax offence or money laundering Companies can avoid prosecution and preserve public image by: Appointing a compliance officer Making their employees available for investigations and interviews Making voluntary disclosures with documents Conducting risk assessment worldwide Conducting thorough internal investigations Making presentations to the DOJ regarding findings of internal investigation and status of risk assessment Conducting extensive training for all employees on FCPA regulations Strengthening company's anti-bribery policy, Implementing a gift-and-entertainment policy Enhancing protocols for due diligence of vendors, suppliers, distributors, or other third-party associates Terminating third-party agents/vendors or employees after thorough investigation Instituting a non-retaliation policy for whistleblowers and introducing a hotline Protecting confidentiality of whistleblowers Hiring a specialized attorney 6/8
What should individuals do? If there is any unreasonable offer or demand from anyone in return for official favors, an individual can: Politely refuse to accept or pay a bribe. If the demand persists, inform the person of your company policy regarding bribes and that you would have to report to your manager or employer, who will then contact enforcement agencies. If a government official is making the demand for bribe, refer them to particular government procedures in your jurisdiction. Report the demand to concerned officials. Use the company hotline or the government website to report the violation. If there is no resolution, talk to senior management officials. Consult a lawyer, if you are unable to get help from your company. If possible, document the evidence of corruption and maintain all records and eyewitness statements. Make copies of these and hand them over to your manager/employer or to concerned authorities. Ask for documentary evidence and proof of any payments requested or made. Conclusion Although the government has been taking various steps to encourage voluntary selfdisclosure with enhanced whistleblower incentives, individual accountability remains the key element when it comes to prevention of bribery. Improved cooperation and increasing focus on investigations around the world amp up the need for voluntary disclosure in a timely manner. As societies' tolerance for misconduct steadily decreases, countries including the U.S. Europe, Japan, China, and Australia are ramping up enforcement capabilities, strengthening anti-corruption regulations, and focusing on coordinated raids. 1 U.S. Securities and Exchange Commission press release, “VimpelCom to Pay $795 Million in Global Settlement for FCPA Violations” February 18, 2016. http://bit.ly/2UO5FuO 2 United States v. Sun-Diamond Growers of California, decided April 27, 1999. 526 US 398 (1999). http://bit.ly/2PAAcZ9 3 Hobbs Act (18 USC Section 1951 – Interference with commerce by threats or violence) http://bit.ly/2Cac0Jr 4 CNN: “Supreme Court vacates former Virginia gov. Bob McDonnell’s conviction.” June 27, 2016. https://cnn.it/2Bkk20H 5 Foreign Corrupt Practices Act Corporate Enforcement Policy 2016. http://1.usa.gov/1MyaeTU 6 Reuters Business News: “Ralph Lauren to pay $1.6 million to resolve Argentine bribery case” April 22, 2013. https://reut.rs/2RYd4Wr 7 Serious Fraud Office (SFO) Guidance on Bribery Act. http://bit.ly/2aKo0CD 7/8
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